Bitcoin reached an all-time high of more than $68,000 per token recently, up nearly 300% over the past year.
There will only ever be 21 million tokens in circulation, and according to current estimates, we should reach that cap around the year 2140.
The supply of gold remains relatively steady over time, and gold tends to have an inverse relation with inflation — as inflation increases and the U.S.
However, as inflation has surged over the past year, gold has underperformed.
That said, there are other factors to consider that could affect Bitcoin’s long-term inflation hedge potential.
Bitcoin has only existed since 2009, while gold has been valuable for centuries.
In addition, while gold is widely accepted as an inflation hedge, many people are still skeptical about Bitcoin in general.
Bitcoin is also extremely volatile, which could affect its potential as an inflation hedge.
In short, nobody knows for certain how Bitcoin will perform as an inflation hedge over time.